Construction Spending Up Thanks To Spike in Public Outlays
Construction spending reached a four-year high in October, thanks to a rare spike in public outlays. That’s according to a press release issued by the Association of General Contractors (AGC) of America which states an unusual surge in public construction in October pushed total construction spending to its highest level since May 2009 - despite a dip in both private residential and nonresidential activity.
Other statistics from the press release that construction owners will be interested in include:
- Construction put in place in October totaled $908 billion, 0.8 percent higher than in September.
- Public construction spending jumped 3.9 percent for the month but trailed the 2012 year-to-date total by 2.8 percent.
- Private residential spending slid 0.6 percent for the month but still climbed 17 percent year-to-date.
- New single-family construction decreased 0.6 percent in October but soared 30 percent in the first 10 months of 2013 compared with 2012.
- Private nonresidential spending edged down 0.5 percent for the month and up 0.8 percent year-to-date
According to Ken Simonson, the association's chief economist, construction will likely display varied patterns in the next several months - multifamily construction will keep burgeoning but single-family homebuilding may stall. Private nonresidential spending should benefit from more power, energy and manufacturing work. Public construction remains threatened.
Read the full press release, which contains further analysis by Simonson, here.